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The illegality defence, trusts of land and the family lawyer

Date:10 AUG 2016
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Barrister

The consequences of a conspiracy to commit an offence of insider dealing concerning RBS shares might not be of obvious interest to a family property lawyer. But in Patel v Mirza [2016] UKSC 42 the Supreme Court held that the House of Lords’ decision in the well-known domestic property case of Tinsley  v Milligan [1994] 1 AC 340 should no longer be followed.

The illegality defence and the principle in Tinsley  v Milligan [1994] 1 AC 340

T and M bought a house to live in. T and M understood that they were joint beneficial owners but legal title was in T’s sole name. This was to enable false claims to benefits to be made. M subsequently confessed to the DSS. T moved out and served notice to quit on M. T and M issued cross-claims for declarations of ownership: T that she was sole owner M that T held it on trust for both in equal shares.

The trial judge found for M. The Court of Appeal and House of Lords dismissed T’s appeals both by a majority. Lord Browne-Wilkinson giving the leading speech of the majority ...

Read the full article here.